RISK MANAGEMENT IN ISLAMIC BANKS: A RESEARCH ON THE PARTICIPATION BANKS IN TURKEY

Risk management is of strategic importance for banks whose operations are largely based on risky transactions. Islamic banks face almost all risks exposed in conventional banks. Risks are further diversified and complicated in Islamic banks. In this respect, risk management in these banks requires s...

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Main Authors: Hüseyin Çetin, Raif Parlakkaya, Mustafa Nihat Demirci
Format: Article
Language:English
Published: Mehmet Akif Ersoy University 2022-03-01
Series:Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
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Online Access:https://dergipark.org.tr/en/download/article-file/1699795
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author Hüseyin Çetin
Raif Parlakkaya
Mustafa Nihat Demirci
author_facet Hüseyin Çetin
Raif Parlakkaya
Mustafa Nihat Demirci
author_sort Hüseyin Çetin
collection DOAJ
description Risk management is of strategic importance for banks whose operations are largely based on risky transactions. Islamic banks face almost all risks exposed in conventional banks. Risks are further diversified and complicated in Islamic banks. In this respect, risk management in these banks requires some unique risk measurement, risk mitigation and risk management systems. Also, Islamic banks cannot use some of the methods used by conventional banks in risk management. Therefore, there is a need for unique methods compliant with Shariah principles. In this paper, a detailed literature review has been conducted on studies investigating risk management in Islamic banks and the theoretical framework of the subject was established. Then, a qualitative research was conducted in order to identify the main risks encountered in Islamic (Participation) banks operating in Turkey. The risk management techniques of these banks were examined and compared with conventional banks. Also, main problems in risk management were determined and possible solutions were recommended in this context. Within the scope of the research, the data obtained by the interview method was interpreted by descriptive analysis method. According to results, risk management in Islamic banks is largely similar to conventional banks. On the other hand, different types of risks encountered in these banks and the obligation to comply with Islamic principles differentiate Islamic banks in the risk management process.
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institution Kabale University
issn 2149-1658
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publishDate 2022-03-01
publisher Mehmet Akif Ersoy University
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series Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
spelling doaj-art-69eb8058e9cb4c818e8f9fd27ca641392025-01-27T14:04:18ZengMehmet Akif Ersoy UniversityMehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi2149-16582022-03-019160863610.30798/makuiibf.913705273RISK MANAGEMENT IN ISLAMIC BANKS: A RESEARCH ON THE PARTICIPATION BANKS IN TURKEYHüseyin Çetin0https://orcid.org/0000-0001-6239-893XRaif Parlakkaya1https://orcid.org/0000-0002-0961-1970Mustafa Nihat Demirci2https://orcid.org/0000-0002-1981-3437NECMETTİN ERBAKAN ÜNİVERSİTESİNECMETTİN ERBAKAN ÜNİVERSİTESİNECMETTİN ERBAKAN ÜNİVERSİTESİRisk management is of strategic importance for banks whose operations are largely based on risky transactions. Islamic banks face almost all risks exposed in conventional banks. Risks are further diversified and complicated in Islamic banks. In this respect, risk management in these banks requires some unique risk measurement, risk mitigation and risk management systems. Also, Islamic banks cannot use some of the methods used by conventional banks in risk management. Therefore, there is a need for unique methods compliant with Shariah principles. In this paper, a detailed literature review has been conducted on studies investigating risk management in Islamic banks and the theoretical framework of the subject was established. Then, a qualitative research was conducted in order to identify the main risks encountered in Islamic (Participation) banks operating in Turkey. The risk management techniques of these banks were examined and compared with conventional banks. Also, main problems in risk management were determined and possible solutions were recommended in this context. Within the scope of the research, the data obtained by the interview method was interpreted by descriptive analysis method. According to results, risk management in Islamic banks is largely similar to conventional banks. On the other hand, different types of risks encountered in these banks and the obligation to comply with Islamic principles differentiate Islamic banks in the risk management process.https://dergipark.org.tr/en/download/article-file/1699795i̇slami bankalarkatılım bankalarırisk yönetimişer’i uyumlu tekniklerderin görüşmebetimsel analizislamic / participation banksrisk managementshraiah compliant techniquesdeep interviewdescriptive analysis.
spellingShingle Hüseyin Çetin
Raif Parlakkaya
Mustafa Nihat Demirci
RISK MANAGEMENT IN ISLAMIC BANKS: A RESEARCH ON THE PARTICIPATION BANKS IN TURKEY
Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi
i̇slami bankalar
katılım bankaları
risk yönetimi
şer’i uyumlu teknikler
derin görüşme
betimsel analiz
islamic / participation banks
risk management
shraiah compliant techniques
deep interview
descriptive analysis.
title RISK MANAGEMENT IN ISLAMIC BANKS: A RESEARCH ON THE PARTICIPATION BANKS IN TURKEY
title_full RISK MANAGEMENT IN ISLAMIC BANKS: A RESEARCH ON THE PARTICIPATION BANKS IN TURKEY
title_fullStr RISK MANAGEMENT IN ISLAMIC BANKS: A RESEARCH ON THE PARTICIPATION BANKS IN TURKEY
title_full_unstemmed RISK MANAGEMENT IN ISLAMIC BANKS: A RESEARCH ON THE PARTICIPATION BANKS IN TURKEY
title_short RISK MANAGEMENT IN ISLAMIC BANKS: A RESEARCH ON THE PARTICIPATION BANKS IN TURKEY
title_sort risk management in islamic banks a research on the participation banks in turkey
topic i̇slami bankalar
katılım bankaları
risk yönetimi
şer’i uyumlu teknikler
derin görüşme
betimsel analiz
islamic / participation banks
risk management
shraiah compliant techniques
deep interview
descriptive analysis.
url https://dergipark.org.tr/en/download/article-file/1699795
work_keys_str_mv AT huseyincetin riskmanagementinislamicbanksaresearchontheparticipationbanksinturkey
AT raifparlakkaya riskmanagementinislamicbanksaresearchontheparticipationbanksinturkey
AT mustafanihatdemirci riskmanagementinislamicbanksaresearchontheparticipationbanksinturkey